Caution is advised, but the strategy to buy silver on dips appears to be favorable, at least until a dip below the 200-day EMA occurs.

  • silver experienced a slight recovery during Friday’s trading session, breaking above the 50-day exponential moving average and breaking above the $24 level in the futures market.
  • A break above the $24.50 level could pave the way for further gains, which could lead to a move towards $25. Market participants are closely watching the 50-day EMAwhich continues to influence price action.
  • Additionally, Thursday’s formation of a hammer candlestick adds to the bullish sentiment. A bounce from the area near the 50% Fibonacci level along with a position just above the 200-week EMA further suggests upside pressure.

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Due to the inherent volatility of silver, increased price swings can be expected, especially given the current concerns surrounding central banks. While most central banks are maintaining tight monetary policy, the Federal Reserve decided to skip raising rates in the previous month. This perceived weakness of the Federal Reserve could present opportunities for investors to capitalize on it. Buyers are likely to enter the market during dips and if the price remains above the 200-day EMA, prevailing bullish sentiment is expected. However, the market is currently struggling with the question of whether the growth momentum can be sustained.

Caution is advised, but the strategy to buy silver on dips appears to be favorable, at least until a dip below the 200-day EMA occurs. The 200-day EMA has significance for many market participants. Additionally, the 61.8% Fibonacci level lies just below it, further increasing its importance as a potential support level. A break above the $25 level is likely to attract more “fear of missing out” traders, which may spur further market activity. It is essential to monitor the movements of the US dollar, as its negative correlation with silver indicates a direct reflection of the dynamics of the forex market.

Finally, silver has shown strength and shows potential for further upside. A break of the 50-day EMA and the $24 level highlights positive momentum. Market reaction to Federal Reserve the decision not to raise rates adds to perceived weakness and creates opportunities for traders. Buying silver on dips remains a viable strategy if the price remains above the 200-day EMA. The importance of this level combined with the presence of the 61.8% Fibonacci level further reinforces its importance. A break above $25 could trigger increased market activity from FOMO traders. Observing the movements of the US dollar will provide valuable insights into the future performance of silver, given their negative correlation. While caution is advised, current market conditions favor a bullish stance on silver.


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